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The Reserve Bank has authorised the Receivables Exchange of India Limited (RXIL), promoted by SIDBI and NSE, to launch the country's first trade receivables exchange platform for MSMEs, buyers and financiers.

Promoted by SIDBI, the apex financial institution for promotion and financing of MSMEs and the National Stock Exchange, RXIL has SBI, ICICI Bank, Yes Bank, SBI Caps, and ICICI Securities as other investors.

The RBI had last year granted in-principle approval to three applicants to launch such an online platform, including the SIDBI-NSE joint venture, RXIL said, adding this makes it the first to receive the authorization to launch the platform.

The trade receivables discounting systems (TReDS), an automated system driven platform is expected to benefit MSMEs by facilitating them to auction their trade receivables at competitive market rates through transparent bidding process on the platform by multiple financiers.

The TReDS will be the first attempt in the country to introduce factoring without recourse and help not only quick realisation of receivables but also appropriate price discovery.

SIDBI Chairman Kshatrapati Shivaji said this initiative is the continuum of series of its efforts in addressing gaps in the MSME ecosystem.

He noted that in early 1990s, SIDBI piloted the receivable financing scheme in reverse factoring process to address the delayed payments problem of MSMEs.